IDA Stock Analysis — IDACORP, Inc.
Sector: Utilities
AI Verdict
IDA is not cheap for a utility at 22.4x forward earnings and 7% growth, so you're paying up for the stability of its regulated monopoly rather than outsized growth.
Competitive Moat
IDACORP operates as a regulated electric utility in Idaho, benefiting from geographic monopoly rights and cost-plus pricing set by state commissions. This regulatory structure ensures stable returns and limits direct competition, making its earnings relatively predictable.
Summary
Investors are watching IDA for its stable regulated utility earnings and a forward P/E below the sector median.
Where It Stands
IDA trades at 22.4x next year's earnings, slightly above the utility sector median of 18x, with forward EPS growth expected at 7.0% and a trailing P/E of 24.0x.
Key Metrics
- Trailing P/E: 24.0x
- Forward P/E: 22.4x
- PEG Ratio: 3.44
- Earnings Growth: +0.1%
- Revenue Growth: -0.0%
- Dividend Yield: 0.03%
- 52-Week High: $149.73
- 52-Week Low: $111.12
Analyst Consensus
10 Buy · 2 Hold · 1 Sell (13 analysts)
Bull Case
The 7.0% forward EPS growth is higher than many utilities, which often see low single-digit growth, potentially justifying the 22.4x forward P/E.
Bear Case
With a trailing PEG ratio of 3.44 and a P/E premium to the sector, any P/E compression toward the 18x sector median would mean a 20%+ drop from current valuation levels.
Catalyst to Watch
Watch for upcoming state regulatory decisions or rate case outcomes that could impact allowed returns and future earnings growth.